Contractual Arrangements in Commercial Projects - Week 10 Portfolio for PPMP20011

This week’s learning has provided a knowledge about the understanding of the commercial planning and commercial projects. This week’s learning has focused on the operation of diverse and complex of government and non-government project contractual arrangements.

(Insert Student Name) / (Insert Student Number) - PPMP20011Unit Portfolio for Week 10
Weekly Portfolio Learning Table Week 10
Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
reading, assignments
Supporting
documentation
including your
prior learning
Week 10 Topic:
Contractual
Arrangements in
Commercial Projects.
Case Study for the
Chunnel Project;
Australia National
Audit Office (2012)
Developing and
Managing Contracts -
Getting the right
outcome, achieving
value for money;
HB 140-2000
Administration
manual for AS 4000-
1997 General
conditions of
contract;
Kerzner (2013)
Chapter 19 Contract
Management;
Law handbook;
1.Describe the
operation of diverse
and complex
government and non-
government project
contractual
arrangements
relevant to a range of
managed services,
ICT, and build
agreements.
This week’s learning has provided a knowledge about the understanding of the
commercial planning and commercial projects. This week’s learning has focused
on the operation of diverse and complex of government and non government
project contractual arrangements.
An agreement in a project is generally formed when an offer is accepted. In an
agreement, each party should have an intention to be bound legally in a valid
agreement. The different elements of a legal contract include an offer, an
acceptance, an intention of creating a legal relationship and a consideration.
The legal condition of a contract therefore includes the intention of both the
parties in binding in a legal contract. Furthermore, the specification of the
contract should be clear to both the parties. Each term of a contract results in a
contractual obligations.
PPMP20011Unit Profile
PPMP20011 Moodle
Web site
Have you any insights
you can add from other
units you have studies or
readings you’ve made?
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(Insert Student Name) / (Insert Student Number) - PPMP20011Unit Portfolio for Week 10
Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
reading, assignments
Supporting
documentation
including your
prior learning
Wikipedia Australian
Contract Law;
PMBOK (2013)
Chapter 12 Project
Procurement
Management;
Procurement Rules
-Australian;
- Victorian;
- WA;
- NSW;
- QLD;
- USA.
Guardian News
article 7th April 2004
Deep in debt.
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
2. Analyse common
arguments using
logic, persuasion and
influence factors as
commonly applied to
conflicting and/or
competing
.
The contract that was followed in the Channel Tunnel project was Build-Own-
Operate-Transfer type of contract. This project aimed at establishing an
underground connection linking the mainlands of United Kingdom and France.
The project was headed by the two governments and was completed by two
national construction teams on each side. However, this Channel project was
publicly funded which is one rare aspect associated with the large scale public
infrastructure projects. This did not affect the project in any negative manner
Tutorials and Lecture
Slides
2 of 5

(Insert Student Name) / (Insert Student Number) - PPMP20011Unit Portfolio for Week 10
Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
reading, assignments
Supporting
documentation
including your
prior learning
stakeholder agendas. leading to successful completion of the project.
3. Differentiate
methods of project
negotiation, conflict
management, and
stakeholder
engagement across
projects consisting of
differing technology
standards and asset
lifecycles.
A well drafted contract has a number of benefits which include establishing the
clarity in business relationships and agreements. This further helps in avoiding
potential contract disputes and thus helps in execution of the project in an
effective manner.
In order to properly formulate a contractual process, adequate and proper
training is required. A contractor should have a clear idea of the requirements of
the project as it will be needed in the process of contract. With a proper
training, the contract process is not hard and execution of a contract is not at all
difficult.
Tutorials and Lecture
Slides
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
4. Explain and apply
methods of
identifying and
reconciling
inconsistent and
conflicting objectives
and drivers that
develop, maintain,
mange relationships
and communication
with key
stakeholders.
The type of contract has a great importance in governing the behaviour of the
contractor and the buyer. A contract process further affects the process of
project execution. This is because, a well drafted contract process helps in
providing clarity in the process of implementation of a business. There is a
relationship between a contract and ownership of risk as contracts are often
associated with the transfer of money thus increasing the risk of ownership in
the system. In certain projects, risk are shared that has a considerable benefit
as well. Sharing of the risk often helps in gaining a mutual benefit from a
contract.
Tutorials and Lecture
Slides
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
5. Explain the
consequences of
project delays,
disruptions, and
changes to planned
The project, scope, aim and requirements is needed to be in place for a contract
to exist. These are some essential components of a contract. One of the
essential elements of a contract is agreement and therefore if agreement is
absent from a contract, the contract may not be considered as a valid. Presence
of agreements therefore determines the validity of a contract.
Tutorials and Lecture
Slides
3 of 5

(Insert Student Name) / (Insert Student Number) - PPMP20011Unit Portfolio for Week 10
Description of
topics including
reading samples
Learning
outcomes of the
unit
Learnings from your experience, this and prior unit
reading, assignments
Supporting
documentation
including your
prior learning
on the right? activities and the
methods for claims
variations, liquidated
damages, contract
entitlements, and
arbitration.
Are any of the
activities above
relevant to your
reflections for the
learning outcomes
on the right?
6. Evaluate project
management tools
that help avoid or
provide conflict
resolution via
negotiated solutions.
The government procurement rules often differ and therefore, standardization
of the sales procurement and response might be a difficult task.
Tutorials and Lecture
Slides
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(Insert Student Name) / (Insert Student Number) - PPMP20011Unit Portfolio for Week 10
References
Anbari F.T., Giammalvo P., Jaffe P., Letavec C., and Merchant R. (Date Unknown) “The Chunnel Project”. PMI Case Studies in Project Management.
http://www.pmi.org/~/media/PDF/Academic/case%20studies/Chunnel%20Project.ashx Visited …../…/…
Kerzner H. 2013.Project Management: A Systems Approach to Planning, Scheduling, and Control, 11th Edition. Hoboken, USA: John Wiley & Sons.
Peña-Mora F., and Tamaki T. 2001. "Effect of Delivery Systems on Collaborative Negotiations for Large -Scale Infrastructure Projects”. Journal of
Management in Engineering. Vol:April 2001 pp.105-121
PMI. 2013a.A Guide to the Project Management Body of Knowledge (PMBOK Guide) 5th Edition. USA: Project Management Institute.
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